Greater Vancouver also contributed to a 1.7 per cent decline in monthly home sales nationally. The decline returned prices to August levels, just after the federal government introduced new mortgage rules that ramped down demand for housing.

"National sales activity has remained fairly steady at lower levels since mortgage rules were changed earlier this year, but that stability masks some real differences in trends among local housing markets," association president Wayne Moen said.

Greater Vancouver also dragged down national home prices, which declined 0.8 per cent to $356,687 from 2011. Excluding Greater Vancouver and Greater Toronto from the national average price actually raised it by 3.2 per cent year-over-year.

The Greater Vancouver Home Price Index fell 1.7 per cent from last year while growing in Toronto (4.6 per cent), Calgary (7.1 per cent) and Montreal (1.9 per cent).